On Wednesday afternoon, the USD/JPY pair continues the growth it started yesterday; the Japanese currency remains weak.
The Japanese Yen is weakening against the USD in the middle of the week. The current quote for the instrument is 113.01.
The statistics published in the morning showed that the All Industry Activity Index in Japan added 0.3% m/m in November after losing 0.5% m/m in the previous month and against the expected reading of +0.4% m/m.
The Bank of Japan is starting its two day meeting today, which will be the last one this year. The results will be published tomorrow morning. No one is expecting the regulator to announce any significant changes in its monetary policy or comments. The key rate will probably remain at -0.1% and the QE program may continue as well.
Under such neutral and even a bit conservative conditions, some important macroeconomic indicators are still decreasing. The Japanese GDP is improving, but the inflation readings are still very mixed, thus preventing the BoJ from announcing that internal problems are solved. In this light, we can’t exclude a possibility that in the nearest future the regulator will have to consider expanding the QE program. As a result, the Yen may get even weaker.
RoboForex Analytical Department